How to trade forex (currency pairs question)?
Im tryin to learn forex trading.
Here's a question a rlly dont understand:
Let's say my my is in CAD (im from canada after all)
And i want to buy GBP/USD.
How would that work if I dont have any GBP or USD
I also read somewhere that when the trade occurs that i buy the base currency
How would that make sense say for the CAD/JPY if my money is in CAD
also if there are any good resources on this topic could you plz leave a link
Thank you
Answers & Comments
Verified answer
babypips is a good source for you to start off with.
But thats for the baby forex traders. If you want to master forex and be profitable in it.
Price action is the king in forex.
14 years of full time forex trading experience
Asia Forex Mentor,
Ezekiel Chew
http://www.asiaforexmentor.com/
You can buy the GBP/CAD cross currency from your Canadian Forex broker, but the liquidity is in the GBP/USD.
Your broker will convert your CAD to USD, then buy the GBP/USD. You can keep this going for months, keeping your profits/losses in USD, then ask your broker to convert your USD back to CAD when you want to cash out. You WILL be subject to USD/ CAD interest rate risk, meaning if the US interest rates rise substantially, the USD rises relative to the CAD, and you could lose converting back to CAD relative to what you bought the USD for.
Personally, I've traded Forex once, couldn't take the dealer spreads. I trade the CME futures, which is a lot more stable.
Well you either accept an offer or make one to buy GBP/USD at a certain rate for your CAD, I have no idea what the current exchange rate is, but you basically say," I'll give you 100 CAD for 75 GBP." Understood?
Remember, there isn't a magical wizard that makes up exchange rates, its what people are willing to trade for.
Try http://www.forex.com/
This strategy is lose-lose for two reasons: 1. You only make money if the price goes above your initial price and then goes below your initial price. There is no guarantee that this will happen. If it does anything else, you will lose money. 2. You must take commissions into account when you compute profits. Since your trades cancel each other out, you are effectively just paying commissions for no reason.
I think some forex platform have explain it
you can ask there
http://www.winningforextradestrategy.com/
hi there !!
I think you can try out the below resource which will surely help you... http://www.gnutrade.com/learning-centre
for free tips check this blog http://www.hatiara.com/
Maybe you can try this
http://www.insiderfxsecrets.com/